In the call for reduced government spending, the Mortgage Interest Deduction has a target on its back. At a cost of $90-108Billion annually, (Goozner, The Fiscal Times; Kort, USA Today) who is benefiting? Only 1/4 of taxpayers filing returns claim the MID. A third of that money is claimed by people with annual incomes of $200,000 or more. 42% is claimed by those earning $100,000-$200,000 annually and 4.3% is claimed by those earning less than $50,000. (Goozner). Those earning $200,000 or more saved $1,862. Those earning $49,777 or less saved $120. Hardly an equitable distribution.

Aside from the cost and subsidizing of high-income earners' home purchases, the MID has negative impact on housing prices and debt accumulation. Studies done by Porterba and Sinai sowed the MID raised home prices by 3 to 6 percent, increases mortgage debt, and contributes to housing bubbles.

Increase home ownership. Pass FairTaxHR25/S122 eliminating personal and business income taxes, capital gains taxes, estate and payroll taxes. FairTaxHR25 makes Mortgage Interest Deduction unnecessary. Payroll, savings and investments are not taxed thus wealth grows faster and that down payment can be achieved with less debt.